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Mortgage rates hold steady as Fed rate decision looms

Posted on Friday, September 11, 2015 at 9:00:28 AM

With a major decision from the Federal Reserve in the works, mortgage rates held steady the week ending Sept. 10 at 3.9 percent, according to Freddie Mac. 

Mortgage rates have remained relatively unchanged week to week - just under 4 percent - as lenders anxiously await the Fed's decision on the benchmark interest rate - whether to bump it up or keep it at a near-zero level. Week-over-week the average 30-year fixed-rate mortgage rose a mere 0.01 percent from 3.89 percent. Meanwhile, the average rate for a 30-year fixed-rate mortgage is far lower than it was a year ago when it was 4.12 percent. 

The average 15-year fixed-rate mortgage rate also ticked upward to 3.1 percent from 3.09 percent last week. The average rate for these mortgages is also down year-over-year, from 3.26 percent. 

The Fed's pending September meeting expected to produce news on the benchmark interest rate, as well as a recent disappointing jobs report. However,little has affected mortgage rates across the country. Mortgage rates have hovered just below 4 percent for some time with a significant change expected to come, if at all, following the Fed's decision.

Whether the benchmark interest rate moves up this month will almost certainly influence peoples' decisions to seek residential financing, as mortgage rates and application volumes are typically closely tied. Should rates bump up at all, the change will, at least initially, likely drive people away from the market. Homebuyers in search of an affordable mortgage would do well to lock in on one before the Fed makes its decision.